SBI’s agricultural NPA ratio remained unchanged at 8% following Maharashtra’s latest farm loan waiver.
The state announced ₹13,000 crore to 17 lakh farmers in the first phase of a ₹36,585 crore scheme that will ultimately cover 56 lakh farmers.
State debt waivers feed directly into banks’ balance sheets, trimming provisioning costs and boosting net profit. In 2020 Maharashtra’s agri‑NPA stood at 23% and crop‑loan NPA at 26%, easing after the disbursement of waivers.
Public sector lenders such as Bank of Maharashtra (₹27,422 crore agri exposure, 7.58% NPA) and State Bank of India (₹7,819 crore, 8% of national portfolio in MH) will likely see a reduction in provisioning, while private banks with 2–4% agri NPAs may enjoy a smaller upside.
Analysts anticipate that the ₹13,000 crore influx will curtail provisioning requirements in FY27, potentially raising net profit margins; fresh lending in the Kharif and Rabi seasons may slow if drought persists.